1. March 14, 1995: The BSE On-Line Buying and selling (BOLT) system is launched because the BSE begins to lose market share to the NSE within the institutional and retail segments. It units the tempo for algorithm or computer-based buying and selling, now a norm however revolutionary in these days. It ends the century-old open-cry methodology of value bids within the fairness market, making the method of promoting and shopping for shares sooner and extra clear.
2. April 1995: India’s first Clearing Company, NSCCL (a completely owned subsidiary of the NSE), is established. It shortens the settlement cycle and ensures that securities are delivered to patrons earlier than the due date. This additional enhances investor confidence in fairness as a viable asset class in India.
3. July 1995: The Investor Safety Fund is established with the target of compensating buyers within the occasion of defaulters’ property not being adequate to satisfy the admitted claims of buyers, and to advertise investor training, consciousness and analysis.
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4. October 1995: The NSE turns into India’s largest inventory trade. The buying and selling volumes on it surpasses that on the BSE, demonstrating the success of electronic-based buying and selling. It pushes the BSE to corporatise itself and undertake trendy buying and selling practices.
5. April 22, 1996: The Nifty50 index is launched. Within the subsequent few years, it could change into probably the most tracked and traced index in India. Its reputation results in the launch of exchange-traded fund (ETF), setting the stage for the ETF trade.
6. November 1996: The primary depository of India, Nationwide Securities Depository Restricted (NSDL), co-promoted by the NSE, is ready up. NSDL kick-starts the method of digitisation of share certificates and different securities, eliminating one other layer of complexity in possession and sale of shares. It additionally lowers the price of fairness possession.
7. 1997: The BSE’s BOLT system is expanded nationwide. This turns the BSE right into a nationwide inventory trade on the strains of the NSE, additional boosting the tradition of on-line share buying and selling and investing.
8. October 11, 1999: The Sensex crosses the 5,000 mark for the primary time, primarily on the again of the Bharatiya Janata Celebration (BJP)-led coalition successful a majority within the thirteenth Lok Sabha elections. That is the start of the dotcom increase out there, which might finish in a 2000 crash.
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9. February 2000: Web Buying and selling on the NSE commences. That is the following step for the NSE digital buying and selling platform. This permits buyers to commerce and make investments with out having to go to a dealer’s workplace/or name a dealer with the intention to purchase or promote shares.
10. March 2000: After a robust run of over 18 months, the Nasdaq peaks in March at over 5,000 stage. Over the following 30-odd months, it could fall to round 1,100. Popularly referred to as the 2000 dot-com market collapse, it’s triggered by international know-how (web economic system) shares and has a major affect on the Indian inventory market.
11. June 9, 2000: The BSE introduces Fairness Derivatives. Buying and selling in derivatives had almost vanished on the BSE after the Sebi ban on badla buying and selling. That is one other try by the BSE to get a slice of the fast-growing, NSE-dominated derivatives buying and selling market.
12. 2000: The Dividend restrictions Act is repealed. Corporations are actually free to distribute as a lot of their earnings to shareholders by the use of dividend as they want. This units the stage for a dividend increase in later years, with many cash-rich firms distributing almost 90 per cent of their annual earnings as dividend to buyers.
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13. March 1, 2001: The Union authorities proposes corporatisation of exchanges. The March 1, 2001, choice to organise inventory exchanges into firms is supposed to make sure a separation of possession, administration and buying and selling rights. The brand new construction addresses the conflict-of-interest problem and likewise allows them to boost bigger quantities of cash wanted for essential actions like modernisation and improve.
14. March 2001: The Ketan Parekh rip-off, the most important after the Harshad Mehta rip-off, is unearthed. Mumbai-based inventory dealer Ketan Parekh is accused of rigging costs of sure securities, often known as Okay-10, between 1998 and 2001 utilizing funds borrowed from banks. He’s additionally accused of insider buying and selling and teaming up with firm administrators to inflate inventory costs. Sebi bans him and his affiliate firms from buying and selling in shares for 14 years.
15. April-Could 2001: There’s a massive redemption in Unit Scheme-1964 (US-64) – Unit Belief of India’s greatest and hottest scheme. The inventory market correction within the aftermath of the Ketan Parekh rip-off results in redemption stress on Unit Scheme 64 and an enormous shortfall between what UTI owes shareholders and the mark-to-market worth of the portfolio. There may be panic when UTI locations all redemptions on maintain for six months and finally must be bailed out by the federal government.
16. July 9, 2001: Inventory choices are launched on the BSE. This permits buyers to purchase or promote shares at a selected value inside a selected date. The launch is the results of reviews from two committees headed by L C Gupta and J R Varma, which laid the bottom for regulatory framework for derivatives market in India.
17. September 9, 2001: A terror assault on the World Commerce Heart (WTC) within the US triggers a pointy fall in inventory markets the world over, and India is not any exception. Ten days after the assault, the worldwide market meltdown results in a pointy correction within the Indian markets. The Sensex falls 17.24 per cent on September 21, 2001, earlier than recovering in about 5 months to the touch a brand new excessive.
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18. November 1, 2001: Inventory futures are launched on the BSE. After the J R Varma Committee recommended a strategy for threat containment measures associated to derivatives buying and selling, Sebi approves its launch. That is adopted by the BSE introducing derivatives buying and selling within the nation in November 2001.
19. December 31, 2001: All securities flip to T+5 (buying and selling plus 5 days) settlement cycle. The T+5 system signifies that purchases or gross sales are to be settled 5 working days later. Within the weekly settlement system, the online place of the dealer was settled by the clearing company on the finish of the week, whereas within the rolling settlement system every commerce is to be settled individually after 5 working days.
20. January 2002: ETFs are launched on the NSE. ETFs are a basket of securities which are traded on an trade and have decrease transaction value. It begins on January 8, 2002, when the primary ETF by Nippon India Mutual fund or the erstwhile Benchmark Asset Administration Firm is launched in India on the Nifty50 index.
Contributed by Samie Modak, Krishna Kant, Ram Prasad Sahu and Sundar Sethuraman